Bankruptcy / Restructure Update | Capital Markets | Bankruptcy Exit

Whiting Completes Bankruptcy; Will Resume Trading on NYSE

Share Print Bookmark    |    Tuesday,September 01,2020

Whiting Petroleum Inc. has successfully completed its financial restructuring and emerged from Chapter 11 protection.

Whiting officially concluded its reorganization after completing all required actions and satisfying the remaining conditions to its Plan of Reorganization. In accordance with the Plan, approximately $2.4 billion in pre-petition senior unsecured notes have been equitized.

Listing on the NYSE

In connection with emergence from Chapter 11, all of the Company’s existing equity interests will be cancelled and will cease to exist, effective before the market opens on September 2, 2020. Shares of the Company’s new common stock will commence trading on the New York Stock Exchange under the ticker symbol “WLL,” on September 2, 2020.

New Leadership and Board of Directors

As previously announced, Lynn Peterson has assumed the role of Chief Executive Officer effective today. Additionally, James Henderson has assumed the role of Chief Financial Officer effective today. Mr. Henderson succeeds Correne S. Loeffler, who has resigned to pursue other interests following the Company’s restructuring. Chip Rimer will continue to serve as Whiting’s Chief Operating Officer.

Mr. Henderson most recently served as Chief Financial Officer of SRC Energy, Inc. before its combination with PDC Energy, Inc. Prior to SRC Energy, Mr. Henderson was Chief Financial Officer of Kodiak Oil & Gas Corporation (“Kodiak”) before its combination with Whiting. Prior to Kodiak, he served as the Director of Finance for Aspect Holdings and the Director of Accounting Services at Anadarko Petroleum Corporation.

CEO Lynn Peterson said: “We are excited to begin our new chapter at Whiting, with a focus on capital discipline and free cash flow generation to create long-term value for our shareholders. On behalf of the Company and newly appointed Board of Directors, I would like to thank our employees for their patience and dedication during this process.”

New Capital Structure Summary

Whiting’s new capital structure includes a new $750 million reserve based revolving credit facility maturing in April 2024. Whiting’s unsecured claims, including holders of Whiting’s senior unsecured notes, received their proportionate distribution of 97% of Whiting’s newly issued common stock (subject to dilution). A summary of Whiting’s new capital structure is presented below:

Unrestricted Cash

• Approximately $13 million, net of near-term working capital payments

New RBL Facility

• $750 million borrowing base
• Approximately $425 million drawn at emergence
• First borrowing base redetermination scheduled for April 1, 2021
• Matures April 1, 2024
• LIBOR + 275-375 bps rate with 100 bps floor

New Common Equity

• Approximately 38.1 million shares of common stock outstanding, with 500 million shares authorized at emergence
• Current Whiting shareholders to receive 1 share of reorganized Whiting’s new common stock for approximately every 75 shares previously owned
• Approximately 3.1 million incremental shares reserved for potential future distribution to certain general unsecured claimants whose claim values are pending